Oil drops 1.5% as trade tensions persist

Oil drilling rigs

Oil prices fell today, April 28, amid trade tensions that continue to loom over energy and commodity markets.

Brent crude futures for July delivery (the most active), dropped 1.51%, or $1.01, to settle at $65.86 a barrel. WTI crude futures for June delivery lost 1.54%, or 97 cents, to $62.05 a barrel.

John Evans, Analyst at PVM Brokerage, told Reuters that the US-China trade war continues to dominate investor sentiment and is the biggest driver of oil prices.

He explained that the nuclear talks between the US and Iran and the differing views among the OPEC+ alliance countries are also among the factors influencing prices, but to a lesser extent than trade tensions.

"This wait-and-see attitude coming out of the US-China talks is leaving a bad taste in peoples' mouths," said Gary Cunningham, Director of Market Research for Tradition Energy. "If the talks go bad, you could see a drop in demand for oil from China," Reuters quoted him saying.

Separately, documents obtained by Reuters indicate that oil tankers are lined up near an old port in western Venezuela to load cargoes before the expiration of shipping permits granted by the US to local, Indian, and European companies on May 27.